In the name of 'make in India', they are breaking India: TMC on Modi's FDI policy

Trinamool Congress has reacted to the Narendra Modi government's decision to radically liberalise the FDI regime by permitting 100% foreign direct investment under government approval route for almost every sector, including defence. TMC leader and Rajya Sabha MP Derek O'Brian issued a statement on social media, saying:

"Trinamool has consistently opposed this policy and has often outlined our reasons for it at different forums, including our election manifestos and Parliament. This will have a negative effect on employment, the economy and the Indian market as a whole. In the name of 'Make in India', they are 'Breaking India'"

The Congress has also opposed the move. Addressing a press conference, Congress leader Jairam Ramesh said the BJP believed FDI to be a magic solution for all economic problems.

India most open economy, says PM

Earlier, Prime Minister Narendra Modi had said the initiative makes India the most open economy in the world for FDI.

"Key reform decisions were taken at a high level meeting chaired by the PM, which makes India the most open economy in the world for FDI. Centre has radically liberalised the FDI regime, with the objective of providing major impetus to employment and job creation in India," the Prime Minister's Office said.

The PMO in a series of tweet said that India has been rated as the top FDI Investment Destination by several International Agencies.

"This is 2nd major reform after the last radical changes announced in November 2015. Now most of the sectors would be under automatic approval route," the PMO said.

"Reform measures undertaken by the Government have resulted in increased FDI inflows at US$ 55.46 billion in financial year 2015-16 as against US$ 36.04 billion during the financial year 2013-14," it added.

The Office also noted that now it has been decided to permit 100% FDI under government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.

What are the key announcements?

The key changes include allowing 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India and permitting up to 100% FDI in the defence sector.

The other sectors that have benefitted include the broadcasting, pharmaceuticals, civil aviation, single brand retail among others.

The ruling BJP-led NDA government has brought major FDI policy reforms in a number of sectors like defence, construction development, insurance, pension sector, broadcasting sector, tea, coffee, rubber, among others in last two years.

The FDI inflow into the country has increased at $ 55.46 billion in 2015-16 as against $36.04 billion during 2013-14.